Dubai fears drive down world stock markets

The FTSE closed yesterday at 5,194.13. In early trading it was down 83.46 points or 1.6 per cent to 5,110.67 on top of yesterday’s loss of 170.68 points, but it has since rallied somewhat to 5146.83 by 8.45am.

The falls follow news that state-owned Dubai World is to delay repayments of some of its debts.

Lack of infomation on the debt restructuring prompted a mass sell-off of stocks connected to the region.

It sparked fears of a double-dip recession.